XINNIX GROUND SCHOOL MORTGAGE
FINAL EXAM QUESTIONS AND
ANSWERS
A program description contains the summary of eligibility requirements for a loan to
be sold to a specific lender/investor. - ANSWER-True
Three different categories of non-US Citizens that may apply for a mortgage loan or
may not qualify are: - ANSWER-Resident Aliens, Non-Resident Aliens, Foreign
Nationals
What is the qualifying rate for a 5/1 ARM with a note rate of 3.75% and 2/6 caps?
The fully-indexed rate is 6.00% - ANSWER-6.00%
When adjusting a 1-Year ARM with 2/6 caps, the rate at the beginning of year 2 will
be determined by the Start Rate + Annual Cap or the Fully-indexed rate, whichever
is less. - ANSWER-True
The maximum LTV for an FHA cash-out refinance is 80% - ANSWER-True
Income or losses derived from partnerships can be located on Schedule K-1 of a
borrower;s personal tax return. - ANSWER-False
A borrower purchased a home on January 15th and is moving in on March 2nd. How
many days from purchase to move in? (For non-leap years only) - ANSWER-46 days
What is the funding fee for a veteran who has not used his/her eligibility and plans on
purchasing a home with 5% down payment? - ANSWER-1.65%
Desktop Underwriting (DU) would result in a decision of Approve/Ineligible on a loan
with excellent credit which qualifies as a jumbo loan program. - ANSWER-True
HOA dues should be added to the PITI for the purpose of calculating ratios when
qualifying a borrower. - ANSWER-True
A veteran has the ability to transfer a portion of their entitlement to another veteran. -
ANSWER-False
A non-arm's length transaction occurs when the borrowers or any other party to the
transaction have a direct relationship with another party to the transaction (including,
but not limited to, the employer, lender, broker, or appraiser). - ANSWER-True
The Correspondent Lender is the "end" lender in a mortgage banker's transaction -
ANSWER-True
Borrowers must meet income limits per USDA guidelines - ANSWER-True
FINAL EXAM QUESTIONS AND
ANSWERS
A program description contains the summary of eligibility requirements for a loan to
be sold to a specific lender/investor. - ANSWER-True
Three different categories of non-US Citizens that may apply for a mortgage loan or
may not qualify are: - ANSWER-Resident Aliens, Non-Resident Aliens, Foreign
Nationals
What is the qualifying rate for a 5/1 ARM with a note rate of 3.75% and 2/6 caps?
The fully-indexed rate is 6.00% - ANSWER-6.00%
When adjusting a 1-Year ARM with 2/6 caps, the rate at the beginning of year 2 will
be determined by the Start Rate + Annual Cap or the Fully-indexed rate, whichever
is less. - ANSWER-True
The maximum LTV for an FHA cash-out refinance is 80% - ANSWER-True
Income or losses derived from partnerships can be located on Schedule K-1 of a
borrower;s personal tax return. - ANSWER-False
A borrower purchased a home on January 15th and is moving in on March 2nd. How
many days from purchase to move in? (For non-leap years only) - ANSWER-46 days
What is the funding fee for a veteran who has not used his/her eligibility and plans on
purchasing a home with 5% down payment? - ANSWER-1.65%
Desktop Underwriting (DU) would result in a decision of Approve/Ineligible on a loan
with excellent credit which qualifies as a jumbo loan program. - ANSWER-True
HOA dues should be added to the PITI for the purpose of calculating ratios when
qualifying a borrower. - ANSWER-True
A veteran has the ability to transfer a portion of their entitlement to another veteran. -
ANSWER-False
A non-arm's length transaction occurs when the borrowers or any other party to the
transaction have a direct relationship with another party to the transaction (including,
but not limited to, the employer, lender, broker, or appraiser). - ANSWER-True
The Correspondent Lender is the "end" lender in a mortgage banker's transaction -
ANSWER-True
Borrowers must meet income limits per USDA guidelines - ANSWER-True
